Burnsville Real Estate 2011 Market Review

The subtitle of this blog post should be "Everything's gonna be alright."

Burnsville Real Estate experienced a correction in 2011. Economic conditions produced a glut of foreclosures and pre-foreclosure (short sale) inventory which depressed the housing market in Burnsville by 10 percent. 

Of course there is a silver lining. When prices drop, buyers buy - and they did in 2011 with force. Sales inceased 26.1% versus 2010 due to reduced home prices and historically low interest rates. At the time of this writing, interest rates are around 3.75% fixed for 30 years (don't quote me on that, insert regular disclaimers here).

The real story in Burnsville Real Estate is the supply. Last year, we had 9 months of inventory. That means at the rate home were being purchased, it would take 9 months to sell all the homes in Burnsville. In 2011, we cut that nearly in half, and we're down to 4.6 months of supply. 

Here's why that matters: When supply is over 7 months of inventory, we refer to that as a buyers market. Buyers are favored when there are more homes than buyers willing to puchase. 2010 was clearly a buyers market. With 5 to 7 months of inventory, the real estate market is stable (i.e. favors neither sellers nor buyers).  Ending 2011 with 4.6 months of supply, the Burnsville Real Estate market is poised for something we haven't seen in a LONG time - the seller's market.   

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